• North Eastern Development Finance Corporation Ltd (NEDFi) has introduced ‘Atmanirbhar Hastshilpkar’ scheme to support artisans in the Northeast region.

• The objective of the scheme is to provide financial assistance in the form of term loan for income generating activities.

• As many as 17 artisans have been provided with credit assistance of Rs 1 lakh each. The credit facility is collateral free and carries a subsidised interest rate of 6 per cent per annum, which is repayable in 24 months.

Establishment of NEDFi

• In 1994, the I.K. Borthakur committee report conceptualised the formation of a North-Eastern Development Bank to cater to the needs of the region. Following this report, the then finance minister, Manmohan Singh, announced the setting up of a development bank for the Northeast states.

• Following this, the North Eastern Development Finance Corporation Ltd. (NEDFi) was incorporated under the Companies Act, 1956, on August 9, 1995 with its registered office in Guwahati. The corporation was formally inaugurated by the then Prime Minister, P.V. Narashima Rao, on February 23, 1996.

• At the time of its establishment, the corporation was placed under the finance ministry, banking division for administrative purposes. However, with the formation of the ministry of development of north eastern region (DoNER) in 2004, the corporation has been placed under the ministry of DoNER for administrative purposes.

What is the purpose of NEDFi?

• NEDFi is notified as a Public Financial Institution under Section 4A of the said Act and was registered as a Non-Banking Financial Company (NBFC) in 2002 with RBI. 

• The core business of the corporation comprises lending activities (fund based) and fee based activities. 

• The lending activities are undertaken through the project finance schemes and microfinance schemes. 

• It also provides fee based advisory and consultancy services.

• NEDFi has been playing an important role in facilitating setting up of new industrial and service sector projects in the Northeast states.

• Over the years, the corporation has provided loans to over 7,500 projects and taken up several development initiatives through its CSR activities in the region.

• NEDFi provides financial assistance to micro, small, medium and large enterprises for setting up industrial, infrastructure and agri-allied projects in the region and also microfinance through microfinance institutions (MFI)/NGOs. 

• The management of NEDFi has been entrusted upon the board of directors comprising representatives from shareholder institutions, DoNER, state governments and eminent persons from the northeast region and outside having wide experience in industry, economics, finance and management.

• During the period January 1, 2020 to December 31, 2020, the corporation extended financial assistance to 720 projects with total sanctions and  disbursements of Rs 323.87 crore and Rs 311.70 crore respectively, facilitating capital formation of Rs 524.24 crore. 

• Various sectors financed were microfinance, health care, tourism and  hospitality, handlooms & handicrafts, food processing, etc.

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